Business Case

Partial Water Recycling in the Textile Industry

The SMEP pilot1 has demonstrated, with measured data from two operational textile facilities in Bangladesh, that partial water recycling is technically feasible, discharge-compliant, and commercially viable today. This business case combines those technical findings with an innovative financing mechanism developed by QStone Capital with the support of Solidaridad to present a complete investment and implementation proposition.

The core finding is simple and powerful: factories can recycle 70-80% of their ETP-treated wastewater at approximately $0.30/m³ – a 7x cost advantage over conventional thermal ZLD at $2.20/m³. This is not a future technology; it is a proven system deployed in Bangladesh, tested on real wastewater from denim washing and woven reactive dyeing segments, and validated against DoE and ZDHC compliance thresholds.

The financing gap that has historically blocked adoption is addressed through a two-part mechanism, with AWP Tokens as the primary instrument: digital certificates representing independently verified, blockchainrecorded avoided water pollution, each redeemable by fashion brands, consumers, or institutional investors to substantiate sustainability claims. A second instrument – a 1% consumer sustainability surcharge at point of sale – generates up to $700 million annually in Bangladesh alone and, crucially, channels those consumer payments directly into AWP token purchases and retirement, closing the loop between retail spending and factory investment.

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Date

February 2026

Author

The Textile Wastewater Recycling Project Consortium (Solidaridad Netwrok asia, QStone Capital, Lenntech, and Kingsley)

Type

Report

Countries

Themes

Business Case, Manufacturing Pollution, Textiles Sector, Wastewater Treatment

Resources

Access the full business case brief here

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